This tax credit is for small business owners who have 100 or fewer full-time W-2 employees in 2020 and less than 500 W-2 full-time employees in 2021. This program was launched in March 2020 to help businesses navigate through the effects of COVID. Business owners can qualify for up to $26k/per employee per quarter. This is a tax credit in the form of a cash recovery.
The Employee Retention Tax Credit is one of the most lucrative tax credits right now and most business owners/CPAs are unaware that they even qualify for it. Since its inception, ERTC has been modified and changed eight times; you can imagine how much confusion this has caused. Resulting in business owners thinking they do not qualify.